Alvarion: Piper Bearish; Cites Weak Carrier Spend

By Eric Savitz

“While we believe Alvarion is well positioned as a WiMax provider, we remain cautious on the ramp in Alvarion’s WiMax sales due to macro factors” and valuation concerns, he wrote in a research note.

Walkley believes macro concerns continue to weigh on operators, who are likely to conserve capital into the second half. “As such, we remain cautious on the ramp in overall WiMax sales for Alvarion in 2009,” he writes.

He also notes that some incumbent technologies, including EVDO and WCDMA, continue to be aggressively deployed aggressively in emerging markets, including China. “We believe these incumbent technologies have economies of scale and a diverse product portfolio for handsets which are essential for carriers to attract customers and recoup capital expenditure spent on the network upgrades,” he writes. “We believe WiMAX will remain only in niche markets and we remain cautious on ramping WiMAX sales in 2009.”

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There are 5 comments

JULY 1, 2009 4:00 P.M.

Iano wrote:

This analyst is having a laugh....

JULY 1, 2009 5:26 P.M.

avraham wrote:

No real professionals over there at Piper Jaffray

Who remember the 32.5 million dollars penalty they have to pay because of stock manipulations back at 2003?

let's see what hapפen with this one

JULY 2, 2009 12:27 A.M.

PookieJenkins wrote:

I think these guys dont care about the effect this type of post causes on people.

JULY 3, 2009 2:12 P.M.

mike kernan wrote:

B.S

JULY 4, 2009 10:59 A.M.

Christopher Tracy wrote:

Oddly, Piper has some good points. But they seem rather out-of-sync with everyone else. 'Tis true WiMax competitors eVDO and WCDMA are being deployed worldwide, particularly in emerging markets. However, even with that, there's ample room for Alvarion to grow - on large campuses for example. So I have to agree with avraham - no genuine wireless telecom professions at Piper. Maybe they want to drive price back down so they can purchase some since they missed the last round at $3/share.

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